$7 Billion Saipan Casino's Future May Be at Risk
- Imperial Pacific issuance to fund casino said to be shelved
- Investors wanted higher premium than company willing to offer
Imperial Pacific’s planned hotel and resort.
Photographer: Stephen Engle/BloombergA bond offering that gaming operator Imperial Pacific International Holdings Ltd. planned to use to fund construction of a new casino on the remote Pacific island of Saipan has been put on hold, according to people with knowledge of the matter, raising questions about the project’s future.
The firm had planned to raise $200 million to $400 million, according to the people, who asked not to be identified as the discussions are private. Investors wanted a higher yield than the 10 percent to 11 percent that the Hong Kong-listed company was willing to offer, the people said. Imperial Pacific, with a market value of $1.9 billion, planned to use the funds for the first phase of its new casino in the U.S. territory that was slated to open next year. It’s currently operating there from a temporary facility.